Mumbai, January 15, 2015: Hailing Reserve Bank Governor Raghuram G Rajan for announcing a cut by 25 basis points in its repo rate as a “good beginning”, developers apex body CREDAI Chairman and CMD of Kumar Urban Development Pvt Ltd, Lalit Kumar Jain said: “This is not enough.”
In fact, Mr. Jain called for a roll back of all liquidity tightening measures and easing the situation to make cost of funding for both home buyers and developers cheaper than what it is today.
A reduction of 200 basis points (reduction of interest rate by 2%) within short span is needed.
He pointed out that inflation could be kept under check by increasing supply for highly populated developing Nation like India.
“We at CREDAI have been relentlessly fighting for giving up orthodox thinking and adopting a pragmatic and practical approach,” Mr. Jain said and expressed the hope that the policy makers would listen “at least now”.
“RBGI also needs to look at the housing sector favourably, and certainly not with negative weightage, as it contributes handsomely to the GDP apart from generating large scale employment across other dependent industries as well”, he added.